Columbus, Ohio-based Finite State, a startup that provides supply chain security for connected devices and critical infrastructure, has raised $30 million in Series B funding.
The funding lands amid increased focus on the less-secure elements in an organizations’ supply chain, such as Internet of Things devices and embedded systems. The problem, Finite State says, is largely fueled by device firmware, the foundational software that often includes components sourced from third-party vendors or open-source software. This means if a security flaw is baked into the finished product, it’s often without the device manufacturers’ knowledge.
“Cyberattackers see firmware as a weak link to gain unauthorized access to critical systems and infrastructure,” Matt Wyckhouse, CEO of Finite State, tells TechCrunch. “The number of known cyberattacks targeting firmware has quintupled in just the last four years.”
The Finite State platform brings visibility to the supply chains that create connected devices and embedded systems. After unpacking and analyzing every file and configuration in a firmware build, the platform generates a complete bill of materials for software components, identifies known and possible zero-day vulnerabilities, shows a contextual risk score and provides actionable insights that product teams can use to secure their software.
“By looking at every piece of their supply chain and every detail of their firmware — something no other product on the market offers — we enable manufacturers to ship more secure products so that users can trust their connected devices more,” Wyckhouse says.
The company’s latest funding round was led by Energize Ventures, with participation from Schneider Electric Ventures and Merlin Ventures, and comes a year after Finite State raised a $12.5 million Series A round. It brings the total amount of funds raised by the firm to just shy of $50 million.
The startup says it plans to use the funds to scale to meet the demands of the market. It plans to increase its headcount too; Finite State currently has 50 employees, a figure that’s expected to grow to more than 80 by the end of 2021.
“We also want to use this fundraising round to help us get out the message: Firmware isn’t safe unless it’s safe by design,” Wyckhouse added. “It’s not enough to analyze the code your engineers built when other parts of your supply chain could expose you to major security issues.”
Finite State was founded in 2017 by Matt Wyckhouse, founder and former CTO of Battelle’s Cyber Business Unit. The company showcased its capabilities in June 2019, when its widely cited Huawei Supply Chain Assessment revealed numerous backdoors and major security vulnerabilities in the Chinese technology company’s networking devices that could be used in 5G networks.